WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) has formally called on President Trump to take immediate action to address Mexico’s ongoing violations of its commitments under the 2019 Joint Steel and Aluminum Agreement. In a letter delivered to the White House today, CPA urged the reinstatement of Section 232 tariffs on Mexico and outlined a series of measures to strengthen the U.S. steel and aluminum industries, which are being severely undermined by surging imports from Mexico and other nations.
The joint agreement was made when the United States–Mexico–Canada Agreement (USMCA) was signed. In that agreement, the U.S. agreed to drop Section 232 tariffs if Mexico agreed to restrain steel and aluminum export volume to 2015-17 levels. The U.S. complied with the agreement, while Mexico almost immediately breached it and continues the breach today, directly harming many U.S. companies and American workers.
Despite Mexico’s promises, imports have skyrocketed. CPA’s letter highlights the alarming surge of steel and aluminum imports from Mexico in recent years. For example, imports of steel conduit from Mexico surged by an astonishing 577% during the Biden administration, contributing to plant closures and layoffs across the United States.
“Mexico’s blatant disregard for its commitments under the 2019 agreement has devastated key sectors of the U.S. steel and aluminum industries, resulting in plant closures, job losses, and reduced production capacity,” said Zach Mottl, Chairman of CPA. “It’s time to put an end to Mexico’s exploitation of trade agreements and restore strong protections for American manufacturers and workers. The Trump administration should reinstate 232 tariffs on Mexico and, if they continue to violate agreements, take action to exclude them from USMCA altogether.”
CPA Requests the Trump Administration to take Immediate Action
- Eliminate the Section 232 tariff waiver for imports from Mexico due to their export surges throughout the last four years that violated the commitments Mexico made to you;
- Raise the supplemental aluminum tariffs from the current 10% to 25%,
- Expand the product coverage of the Section 232 aluminum action to include derivative products with higher tariffs levels on derivatives, the products made from steel and aluminum;
- Eliminate product exclusions in both the steel and aluminum actions, and
- Use quota administered by U.S. Customs and Border Protection (CBP) to ensure that commitments not to exceed historic volumes are actually enforced.
CPA Members Harmed by Mexican Import Surge
Earlier this month, released a statement after Nucor Corporation announced it will halt production at its wire rod rolling mill in Connecticut, citing challenging market conditions created by a flood of low-priced imports from Canada, Greece, Mexico, Poland, and Ukraine. CPA also highlighted Liberty Steel’s closures as a warning sign of the dire state of the U.S. steel industry.
The unchecked surge has led to additional major closures, such as the Zekelman Industries’ Wheatland Tube plant in Chicago which resulted in nearly 250 layoffs. These closures are fueled by low-priced imports, including from Mexico and Canada, and are a direct threat to U.S. steel mills and the loss of thousands of American jobs.
CPA’s economic analysis indicates that over one million American jobs are at risk due to the Mexican steel surge and the broader import crisis. Mexico’s actions are not those of a reliable ally and are directly harming America’s industrial base. An additional CPA economic analysis shows that the U.S. aluminum industry is being harmed by a surge of imports, with some product categories seeing a 380% increase since 2015.
Implementing an America First Trade Policy
CPA’s letter also outlines additional recommendations that are aligned with President Trump’s America First Trade Policy Review, which is expected to be unveiled on April 1, 2025. By addressing Mexico’s violations now, the administration can set the stage for a robust, pro-American trade policy that revitalizes domestic industries and strengthens national security.
“The Trump administration has a historic opportunity to correct past trade policy failures and unleash a new era of American industrial growth,” Mottl concluded. “The unchecked surge in imports from Mexico and other nations is not just an economic problem—it’s a national security issue. Reinstating tariffs and enforcing trade rules will not only protect American jobs but also ensure that our industrial base remains strong and self-reliant. CPA stands ready to work with the administration to protect American workers, secure supply chains, and rebuild the industrial base.”
CPA’s letter makes the following recommendations on any and all appropriate countries to achieve the goals of the 232 program:
- Implement Tariff Rate Quotas (TRQs) modeled after the successful TRQ the first Trump administration imposed on washing machines, which generated significant revenue and incentivized domestic production.
- Increase aluminum tariffs from 10% to 25% to align with steel tariffs and provide stronger protections for U.S. producers.
- Impose specific tariffs for low-cost products like wire rod and steel conduit with very low unit costs to ensure adequate protection for domestic producers.
- Repeal Exclusions that have greatly undermined the goals of the steel and aluminum actions, and which have been a complete detriment to reshoring supply chains.
- Expanding product coverage to include derivative goods made from steel and aluminum, such as sub-assemblies and vehicle components.
- Rescind World Trade Organization promises such as granting duty-free treatment on steel and aluminum imports to every other WTO country, with the only authorized exception being rigged anti-dumping and countervailing duty procedures that are prohibitively costly for producers.
Read CPA’s full letter to President Trump here.
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